Top News #4

Cheap oil threatens governments' plans

While American consumers have been getting much needed relief from gas prices at a fraction of their 2008 highs, governments that recently had been flush with energy-fueled cash are finding themselves in a difficult position, as the value of their commodities drops day by day.

The stark drawback of demand from motorists, spurred by high energy costs translating to gas prices in excess of $4.00 per gallon, led to a drastic change in consumption patterns.

Energy exporters find themselves cutting back production, dropping development deals, and questioning future investments.

The article I read in The Washington Post by Steven Mufson was clearly written in a straightforward style, and was detail-driven. There were a number of salient points made about the reciprocal effects of energy market disruption, from changes in driving and car purchasing patters, to governmental pressures mounting as energy-dependent budgets are thrown off.

Another effect of the overall economic situation is that with so many jobs being lost, a significant portion of the workforce is not commuting the way it was before. Even with people carpooling, there were more vehicles on the road and using resources when the economy was rolling along, and now those people are at home claiming disability.

http://www.washingtonpost.com/wp-dyn/content/article/2009/02/19/AR2009021903434.html?wpisrc=newsletter